THE economy of Singapore grew by an estimated 0.8 per cent in the three months to September from a year ago, reinforcing the country's recovery from recession, official figures showed yesterday.

It was the country's first year-on-year expansion in five quarters and was based on July and August data. The estimate is expected to be revised when the full September numbers are available next month.

'A clear but modest recovery is underway globally, at least for the next three or four quarters,' theMinistry of Trade and Industry (MTI) said in a statement.

The Government upgraded its full-year growth forecast to a contraction of 2-2.5 per cent - a significant improvement from the previous estimate of a 4-6 per cent contraction.

'One-off factors such as restocking activities and fiscal stimulus measures will continue to support growth in the near term,' MTI said.

However, it cautioned that economic activity will 'probably remain below pre-crisis levels' because of the drag on demand in the developed economies.

On a seasonally adjusted quarter-on-quarter annualised basis, GDP surged 14.9 per cent following a 22 per cent expansion in the second quarter to June, said MTI. It was the second successive quarter-on-quarter growth period.

'Growth was driven by the continued expansion of biomedical and electronics manufacturing output, and improvements in the trade-related and tourism sectors...on the back of a gradual stabilisation in global economic conditions,' MTI said.

Mr Song Seng Wun, regional economist with CIMB-GK Research, said Singapore was 'firmly out of recession' with GDP expanding in the third quarter.

Singapore sank into recession in the second quarter of last year, hurt by falling demand for its exports in major markets.

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